Reshuffle likely to be less brutal for other ministerspublished at 15:37 BST 5 September

15:37 BST 5 September

Iain Watson
Political correspondent

The reshuffle so far has claimed Lucy Powell - the leader of the house until this afternoon and ex-chief of staff for former Labour leader Ed Miliband - and Ian Murray, who has made clear his disappointment at being removed as Scottish secretary.

But the reshuffle is likely to be less brutal for some other ministers.

Work and Pensions Secretary Liz Kendall was under huge pressure - not least from her fellow Labour MPs - over the planned welfare changes and the subsequent U-turn on Pips.

I understand she is likely to move within government rather than being removed from it.

The PM has some other moves in mind among his ministerial team.

But it’s possible some won’t like what is on offer and a planned move can slip into a resignation.

This is a high stakes reshuffle with the government trailing in the polls - and a Labour Party deputy leadership contest in the offing which could provide a vehicle for MPs and others in the wider Labour movement who want to see a change in direction.

We have a statement now from Ian Murray, who is gone from his post as secretary of state for Scotland.

In an emotional letter, he calls the role the "honour" of his life.

He reflects on work he has done, including "the UK supercomputer at the University of Edinburgh, the largest budget settlement in the history of devolution, GB Energy in Aberdeen, saving the Harland & Wolff yards, our Brand Scotland campaign, and putting the Scotland Office back into the service of ordinary working Scots."

"After the dreadful legacy from the previous government, there is a lot more to work to do," he adds. "I will remain as impatient for change as the public. Politics in the UK, and elsewhere, now is at a dangerous crossroads.

"I am hugely disappointed to be leaving government, with so much done and so much more to do," but he looks forward to being with his family more.

You can read the full statement below.

Image source, Ian Murray

Georgia Roberts
Political correspondent

Image source, PA Media

Away from the prime minister's reshuffle, I just bumped into Darren Jones, the man who earlier this week was appointed in what was touted as the key role symbolising the government’s reset - the newly created chief secretary to the prime minister.

Given events, I asked him how he thought it’s all going.

He didn’t want to say much, but he did say Angela Rayner did the right thing in stepping down.

He added that he was looking forward to "getting on and delivering" for the prime minister in his new role.

But that delivery - or "phase 2" of this government, as No 10 are calling it - has been off to a jittery start.

Jones earlier posted on X, calling Rayner the "embodiment of social mobility". He said: "Angela Rayner achieved a huge amount for the country this past year - record investment in council housing and better pay and rights at work."

There's discontent in Scottish Labour over Murray's removalpublished at 14:56 BST 5 September

14:56 BST 5 September

Phil Sim
Political correspondent

Image source, EPA

Things are moving very fast at Downing Street, but this was a real surprise.

Ian Murray is Scottish Labour’s longest serving MP - indeed for a while he was their only MP, the party’s last toehold north of the border.

He was also a loyal Starmer foot soldier, always happy to go to bat for the leadership in a way he was notably not during the leadership of Jeremy Corbyn.

There has been some immediate discontent from Scottish Labour figures over this news - that after years being their sole torchbearer at Westminster, Murray has lasted barely a year as Scottish secretary.

One Labour candidate for next year’s election said it was a “shocker”, and that “our electoral success last year was built on his back”.

As we just reported, leader of the House of Commons Lucy Powell has left government as part of PM Keir Starmer's reshuffle.

Powell's now released a statement - here it is in full:

"I spoke to the Prime Minister earlier today and he informed me of his intention to appoint a new Leader of the House of Commons. It has been an honour to serve in the first Labour Government in 15 years, particularly as Leader of the House.

"It's been a role I've really enjoyed - overseeing the first Labour King's Speech in a generation with such an ambitious and transformative legislative programme, taking on vested interests in the service of ordinary people. I've also had a big agenda of Modernising the Commons - I've tightened the rules on MP's second jobs - with more to come, standing up for the different voices in the House, family-friendly measures and have been embarking on improved accessibility and inclusion.

"These are the changes a Labour Government can and should be making.

"This has not been an easy time for the Government. People want to see change and improvements to their difficult lives. Nor in politics more generally, not least with the rise of abuse, misrepresentation, social-media echo chambers and the call for easy answers. As women in public life, we experience this all the more. The future of our democracy looks uncertain and Parliament and representational politics has an important role to play.

"Living and raising my children in my home city of Manchester has always given me a different perspective of politics. My first job has always been to represent the residents of Manchester Central, and I look forward to using my voice and my role on in Parliament to ensure they see the change they long for."

Henry Zeffman
Chief political correspondent

Lucy Powell has left the government. She was leader of the House of Commons.

We'll continue to bring you the latest from Keir Starmer's reshuffle as we learn it.

Nick Eardley
Political correspondent

Ian Murray is no longer secretary of state for Scotland, the BBC understands.

Starmer really didn't need this, not least because of the three roles Rayner heldpublished at 14:27 BST 5 September

14:27 BST 5 September

Chris Mason
Political editor

Friday is meant to be one of the quieter days in politics.

What happened, and this has become increasingly clear hour-by-hour since Wednesday, is that Angela Rayner had not done as much as she needed to do in that initial process of buying a flat in Hove.

What is interesting in the analysis of the ethics adviser Sir Laurie Magnus is that he said she acted with integrity and with a dedicated and exemplary commitment to public service.

It acknowledges that she thought she had done enough in the first instance to work out which rate of stamp duty she would have to pay.

But in the end, as she had acknowledged, she hadn't been as diligent as she could've been and for that reason there was a breach in the ministerial code.

So, there's nuance there in his tone but there wasn't a nuance in his conclusion and having breached the code it was inevitable that she would've been on her way out of government.

This afternoon, Starmer will now try and turn a desperately difficult week for the government into an opportunity.

There's going to be a wider government reshuffle at cabinet level. Sources in government are telling me that Chancellor Rachel Reeves will not move. By saying that, you're implying that plenty of other people very well might be in the coming hours.

From Starmer's perspective, he really, really didn't need this, not least because of the three jobs Rayner occupied. She could've stayed in her role as deputy leader of the Labour Party, an elected role. Now she has resigned, it begins a process that Starmer isn't entirely in charge of.

There's also the question of what a figure like Rayner, with her prominence and distinctive voice, does from the backbenches.

Angela Rayner has stepped down as deputy prime minister, secretary of state and deputy leader of the Labour party.

Our team has prepared a video compilation that shows some of the highlights of her career as a politician, dating back to when she was first elected as an MP for Ashton-under-Lyne in 2015.

Watch it here:

Chancellor to stay in place - but wider extent of reshuffle not yet clearpublished at 13:39 BST 5 September

13:39 BST 5 September

Iain Watson
Political correspondent

Keir Starmer is desperate to get back on the front foot.

The advice from Sir Laurie Magnus was unequivocal - the prime minister had no choice really but to ask Angela Rayner, his former deputy, to go.

Rayner resigned and he has thanked her for her resignation so it's not formally a sacking - but there was no question, the expectation was that she was going to go.

The most immediate thing the prime minister needs to do now is find someone else to cover her ministerial responsibilities - including some of Labour's flagship policies.

To get on the front foot he has decided he will do a wider reshuffle. The question is how far it will go.

We know that the chancellor will stay in place. Starmer will be keen to make sure that the markets aren't getting jittery over the changes in government or speculating there might be a dramatic change in direction.

Henry Zeffman
Chief political correspondent

Keir Starmer is expected to appoint a new deputy prime minister, the BBC understands.

This will be seen as potentially a significant influence on the deputy leadership election.

Imogen James
Live reporter

Three letters spelled the end of Angela Rayner's time as deputy prime minister, housing secretary, and deputy leader of the Labour Party.

Shortly after midday, news broke that Starmer had received a much-anticipated report from his independent ethics adviser.

It confirmed that Rayner had broken the ministerial code by underpaying stamp duty on a property in Hove. The report also acknowledged that Rayner had acted with "integrity" and given full cooperation to the investigation.

Rayner's resignation letter, two pages long, said she took "full responsibility" and was resigning due to the findings, and the impact of attention on her family over the matter.

Starmer also penned a note, handwritten, in which he said he believed it was the right decision despite it being "very painful".

There was, of course, some cross-party reaction. Conservative leader Kemi Badenoch said questions remained on what Starmer knew and when. Meanwhile, Lib Dem leader Ed Davey said the government needed to move on and Reform's Nigel Farage said the resignation was "inevitable".

We're continuing to bring you the very latest, so stay tuned.

Joshua Nevett
Reporting from Reform's conference

Nigel Farage says the reason he’s moved his speech forward is “because this government is deep in crisis”, alluding to the resignation of Angela Rayner.

The party's leader had been due to make his keynote speech just after 16:00 BST, but instead started just after 13:00.

He accuses cabinet ministers of being “wholly unqualified people to run our country”.

“They’re not fit to govern,” he says.

Farage is clearly keen to capitalise on the instability caused by Rayner’s departure and use it to his political advantage.

• You can watch Farage's speech over in our other live page - our political colleagues are taking in all the action in Birmingham

Image source, PA Media

There's more political reaction now to Angela Rayner's resignation.

Lib Dem leader Ed Davey, who had earlier in the week voiced his support for Rayner, given her caring duties for her son, tells the BBC he hopes the government can "move on and deal with the huge problems millions of people in our country face".

Davey adds that it's "clear" her position became "untenable".

"It was inevitable," says Reform UK leader Nigel Farage, adding that "you can't be housing secretary and avoid £40,000 of stamp duty".

Farage says Rayner's resignation as deputy leader of the Labour party and deputy PM will trigger an internal election within the Labour party - and "you're going to see the hard left of Labour shouting very, very loudly".

Image source, Reuters

Billy Kenber
Politics investigations correspondent

Angela Rayner will now “almost certainly” face a fine from the tax authorities for “carelessness” in the wake of Sir Laurie Magnus’s findings, according to tax experts.

The independent ethics adviser found that Rayner failed to seek “expert” tax advice over the amount of stamp duty payable on her property purchase in Hove.

This was in spite of two separate law firms suggesting that she needed specific tax advice, with one going as far as to recommend it.

Tax experts said this was likely to mean HM Revenue and Customs will deem her to have acted negligently in not taking sufficient care that she paid the correct amount of tax.

Sean Randall, an independent stamp duty expert, tells me: “The conclusions from Sir Laurie Magnus CBE mean that Angela Rayner will almost certainly be liable to a penalty for carelessness.

HMRC are likely to find that it was not reasonable for her to have relied on the non-expert advice received…without heeding the caution to seek specialist advice. Her failure to do so means that she did not have a ‘reasonable excuse’.”

Dan Neidle, the founder of Tax Policy Associates and a member of the Labour Party, says: “She was told to obtain tax advice and didn’t. My immediate reaction is that means she was probably careless."

A fine of 20% would amount to £8,000, while other experts believe it could reach 30%, or £12,000. Such a penalty would add a further financial blow to the former deputy prime minister’s dramatic fall.

We're now hearing the first reaction from Tory leader Kemi Badenoch .

In a video posted to X, moments after Rayner's resignation was announced, she says "it’s only because of Keir Starmer’s weakness that she wasn’t sacked three days ago" - adding: "Britain deserves better."

She says Starmer showed "no principle, no backbone" and claims "questions remain" on what the PM knew, and when. Badenoch goes on to ask if he misled the public.

Starmer's government is in crisis, Badenoch says, adding that "all of this is a distraction from the profound economic crisis the country is facing because of his decisions".

"One rule for them, another for everyone else. The country deserves better, only the Conservatives under my leadership will deliver that."

Henry Zeffman
Chief political correspondent

Keir Starmer is seizing a moment of weakness and trying to turn it into a moment of strength.

A reshuffle is under way, but it will not merely involve the replacement of Angela Rayner as housing secretary.

It feels like he is going much wider, seeking to draw a line and move the conversation on.

Phase two, take two - if you will.

The ethics report is clear - Rayner had to gopublished at 12:33 BST 5 September

12:33 BST 5 September

Henry Zeffman
Chief political correspondent

Reading Sir Laurie Magnus's report, it is clear that Angela Rayner and the prime minister were left with absolutely no choice: she had to leave government.

This week Rayner's allies have suggested that she received advice from various quarters in advance of purchasing the property in Hove. It was left unclear whether that was expert tax advice.

It's now clear that it was left unclear because she never sought expert tax advice.

Magnus says that such advice as she had received was "qualified by the acknowledgement that it did not constitute expert tax advice and was accompanied by a suggestion, or in one case a recommendation, that specific tax advice be obtained".

Rayner did not take that advice, something Magnus says was "highly unfortunate... particularly given her status and responsibilities" as the housing secretary and deputy prime minister.

The final document we've got to bring you is independent ethics adviser Sir Laurie Magnus's letter to the PM.

In it, he says the rules Rayner was dealing with are “complex”. He also acknowledges that Rayner was informed twice in writing that she only needed to pay the lower level of stamp duty.

But, he says this advice was qualified by the acknowledgment that it did not constitute expert tax advice - and suggested that this be obtained.

Without having sought this advice, Magnus says Rayner "cannot be considered to have met the highest possible standards of proper conduct" as required by the Ministerial Code. As a result, he advises Starmer that the Ministerial Code has been breached by Rayner.

You can see the letter, in full, below - or read the copy here:

Downing Street has shared a handwritten letter from Prime Minister Keir Starmer to his former deputy, Angela Rayner.

He starts by thanking Rayner for informing him of her decision to resign from the government, adding that he's "very sad that your time as deputy prime minister, secretary of state and deputy leader of the Labour Party has ended in this way".

The PM says Rayner was "right" to refer herself to the independent adviser on ministerial standards and "right to act on his conclusion".

You can see the letter, in full, below - or read the copy here:

Image source, Downing Street

Image source, Downing Street

Image source, Downing Street